Question 1

Explain the impact of the principle of privity on contracts.

Accepted Answer

When two people enter into a c

Question 2

The threat of violence makes a contract voidable.

Accepted Answer

A) True 
 B)False

Question 3

For a misrepresentation to be actionable, it must become a term of the contract.

Accepted Answer

A) True 
 B)False

Question 4

An assignee is in no better position than the original contractor.

Accepted Answer

A) True 
 B)False

Question 5

What is the significance of an assignment qualifying as a statutory assignment?

Accepted Answer

The assignee can sue the origi

Question 6

Misgana ran into Tarja at their local gym. Tarja, it turns out, operated an art gallery that did custom framing and mounting. Misgana had some beautiful prints she wanted to have put into special frames and agreed to pay Tarja $400 to have this done. Tarja passed the task along to her new assistant, Shandy. Shandy used the wrong adhesive when mounting the prints, which meant they did not stick properly to the backing. Which of the following is true?

Accepted Answer

A)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints. 
B)  Misgana could only sue Tarja because she is the one who did a poor job of the framing. 
C)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  Misgana could successfully sue only Tarja for breach of contract. 
A)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints. 
B)  Misgana could only sue Tarja because she is the one who did a poor job of the framing. 
C)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  Misgana could successfully sue only Tarja for breach of contract.

Question 7

Undue influence takes place when one person uses violence to force another to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following will be excluded by the parol evidence rule?

Accepted Answer

A)  Evidence of a collateral agreement 
B)  Express terms 
C)  Extrinsic evidence 
D)  Evidence of implied terms 
E)  A condition precedent 
A)  Evidence of a collateral agreement 
B)  Express terms 
C)  Extrinsic evidence 
D)  Evidence of implied terms 
E)  A condition precedent

Question 9

Novation is the term used when a new party is substituted for an original party to the contract.

Accepted Answer

A) True 
 B)False

Question 10

When it has been clearly established that one of the parties to the contract has been the victim of undue influence, that contract is void.

Accepted Answer

A) True 
 B)False

Question 11

In what way is a trust an exception to the privity rule?

Accepted Answer

A third party beneficiary can

Question 12

Privity of contract applies in which of the following situations?

Accepted Answer

A)  Where an insurance contract is involved 
B)  Where an interest in land is involved 
C)  Where a trust is involved 
D)  Where goods are being sold 
E)  Where a trust has been created 
A)  Where an insurance contract is involved 
B)  Where an interest in land is involved 
C)  Where a trust is involved 
D)  Where goods are being sold 
E)  Where a trust has been created

Question 13

On September 1, Beeton contracted to sell $4,000 worth of specified Kenyan lumber to Cairns. Beeton expected the arrival of the lumber soon, so the delivery date was set for September 8. On September 5, Beeton assigned, in writing, his contractual right to receive the $4,000 to his bank, which was pressing him to reduce his $17,000 debt. The bank sent a written notice to Cairns instructing him to forward the $4,000 to the bank and not to pay Beeton directly. Unknown to either Beeton or Cairns, the lumber had been lost at sea in August, before they had even entered the contract. On these facts, which of the following is true?

Accepted Answer

A)  This assignment was not a statutory assignment; i.e., it failed to satisfy the statutory requirements for enforcement by the assignee against the debtor. 
B)  Because the goods bargained for had perished before the parties had contracted for them, the court would hold the contract void. 
C)  The assignee would receive whatever the assignor had assigned to him, namely, the $4,000. 
D)  Because the assignment was made by Beeton to his bank in good faith, Cairns must pay the bank $4,000. 
E)  The time for determining the "equities between the parties" is always the time that notice of the assignment is given. 
A)  This assignment was not a statutory assignment; i.e., it failed to satisfy the statutory requirements for enforcement by the assignee against the debtor. 
B)  Because the goods bargained for had perished before the parties had contracted for them, the court would hold the contract void. 
C)  The assignee would receive whatever the assignor had assigned to him, namely, the $4,000. 
D)  Because the assignment was made by Beeton to his bank in good faith, Cairns must pay the bank $4,000. 
E)  The time for determining the "equities between the parties" is always the time that notice of the assignment is given.

Question 14

A trust inferred by the courts to benefit a third party to a contract is known as ________.

Accepted Answer

A construc

Question 15

Which one of the following mistakes voids a contract?

Accepted Answer

A)  Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B)  Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally. 
C)  Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. 
D)  Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. 
E)  When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat. 
A)  Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B)  Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally. 
C)  Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. 
D)  Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. 
E)  When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat.

Question 16

Explain what is meant by "rectification".

Accepted Answer

Correction, by the c

Question 17

Performance by another qualified person of the obligations under a contract is known as ________.

Accepted Answer

Vicarious

Question 18

Explain what is meant by a novation.

Accepted Answer

A novation occurs where two parties have

Question 19

Explain what is meant by a "constructive trust".

Accepted Answer

A trust inferred by

Question 20

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

Accepted Answer

A)  Rectification 
B)  Mistake 
C)  Rescission 
D)  Illegality of object 
E)  Non est factum 
A)  Rectification 
B)  Mistake 
C)  Rescission 
D)  Illegality of object 
E)  Non est factum

Explain the impact of the principle of privity on contracts.

The threat of violence makes a contract voidable.

For a misrepresentation to be actionable, it must become a term of the contract.

An assignee is in no better position than the original contractor.

What is the significance of an assignment qualifying as a statutory assignment?

Undue influence takes place when one person uses violence to force another to enter into a contract.

Which one of the following will be excluded by the parol evidence rule?

Novation is the term used when a new party is substituted for an original party to the contract.

When it has been clearly established that one of the parties to the contract has been the victim of undue influence, that contract is void.

In what way is a trust an exception to the privity rule?

Privity of contract applies in which of the following situations?

A trust inferred by the courts to benefit a third party to a contract is known as ________.

Which one of the following mistakes voids a contract?

Explain what is meant by "rectification".

Performance by another qualified person of the obligations under a contract is known as ________.

Explain what is meant by a novation.

Explain what is meant by a "constructive trust".

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 8: Factors Affecting the Contractual Relationship

Explain the impact of the principle of privity on contracts.

The threat of violence makes a contract voidable.

For a misrepresentation to be actionable, it must become a term of the contract.

An assignee is in no better position than the original contractor.

What is the significance of an assignment qualifying as a statutory assignment?

Undue influence takes place when one person uses violence to force another to enter into a contract.

Which one of the following will be excluded by the parol evidence rule?

Novation is the term used when a new party is substituted for an original party to the contract.

When it has been clearly established that one of the parties to the contract has been the victim of undue influence, that contract is void.

In what way is a trust an exception to the privity rule?

Privity of contract applies in which of the following situations?

A trust inferred by the courts to benefit a third party to a contract is known as ________.

Which one of the following mistakes voids a contract?

Explain what is meant by "rectification".

Performance by another qualified person of the obligations under a contract is known as ________.

Explain what is meant by a novation.

Explain what is meant by a "constructive trust".

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters